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Exhibit 1A: India real GDP growth, 1980-2006India GDP and GDP growth rate, 1980-2006USD (billion) %90020.00%80015.00%70060010.00%5005.00%4000.00%3002001000Source: GDP data from EconStats.com.198019811982198319841985198619871988198919901991GDP199219931994Exhibit 1B: Private equity investments in Indian companies1995Annual GDP growth rate19961997199819992000200120022003200420052006Year-5.00%-10.00%-15.00%PE investments in Indian companies 1990-2006USD (million)% as GDP2,5000.30%2,0000.25%0.20%1,5000.15%1,0000.10%5000.05%01990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006PE investments in India companies PE investments as % of GDP Year0.00%Data Source: Private equity investment data from SDC Platinum VentureXpert. GDP data from EconStats.com.Exhibit 2: Time line of ICICI Venture’s investments in SubhikshaTimeJun-00Late 2003Dec-04Nov-06Investment amount (USD)3.4 million3.5 million6.5 million7 millionSource: Authors compilation from interview notes and company documents.148 Case studies: ICICI Ventures and SubhikshaThe Global Economic Impact of Private Equity Report 2008
Exhibit 3: Subhiksha’s board composition andbrief biographiesBoard Chairman: S B Mathur, age 52, an Indian national,is the Chairman and an independent director of ourcompany. He is a fellow of the Institute of CharteredAccountants of India and the Institute of Cost Accountantsof India. He has worked with the Life Insurance Corporationof India from 1967 to 2004, when he retired as its chairman.During his tenure at the Life Insurance Corporation of India,he has held several positions, including those of the seniordivisional manager, Gwalior division, chief of corporateplanning, general manager of LIC (International) EC, zonalmanager for the western zone and the executive director.Managing Director: R Subramanian, age 41, an Indiannational, is the Managing Director of our company.Subramanian is a founder director of our company. Heholds a master’s in Engineering from the Indian Instituteof Technology, Madras and a Post Graduate Diplomain Business Administration from the Indian Instituteof Management, Ahmedabad. He was a gold medalistat the Indian Institute of Management, Ahmedabad.Director: Bala Deshpande, age 41, an Indian national,has been nominated to our board by ICICI Venture FundsManagement Company Limited. She holds a Master’s inEconomics from Bombay University and a Master’s inManagement Studies from the Jamnalal Bajaj Institute ofManagement Studies. Bala Deshpande has over 17 years ofwork experience, including seven years in the private equityfield. Prior to ICICI Venture Funds Management CompanyLimited, she has had multi‐industry exposure and hasworked with leading multinational companies, includingBest Foods, Cadburys and ICI. She was part of the strategicplanning team at Best Foods and was nominated for theWomen Leadership Forum held at Best Foods, New York.Apart from the company, Deshpande is on the board ofdirectors of several companies, including Air Deccan Limited,Nagarjuna Constructions, Welspun, TechProcess Solutionsand Naukri.com. She currently focuses on sectors such asretail, media, IT, ITES, telecoms and construction as well assome manufacturing-related industries.Director: Renuka Ramnath, age 45, an Indian national,has been nominated to our Board by ICICI Venture FundsManagement Company Limited. She holds a bachelor’s inEngineering and a Master’s in Business Administration(Finance) from Bombay University. She is the managingdirector and chief executive officer of ICICI Venture FundsManagement Company Limited, a wholly‐owned subsidiaryof ICICI Bank Limited. Renuka Ramnath has over 21 years ofwork experience with the ICICI Bank Group. She has workedwith the merchant banking division of the group and headedthe corporate finance and equities businesses at ICICISecurities Limited. She moved back to ICICI in 1997 toset up the structured finance business. She has alsobeen involved in setting up the e‐commerce initiatives forthe ICICI Bank Group. Ramnath has featured in the Top25 Most Powerful Women in Indian Business list publishedby Business Today and in the list of India’s Most PowerfulCEOs published by the Economic Times.Director: Rama Bijapurkar, age 50, an Indian national, is anindependent director of the company. Bijapurkar holds a PostGraduate Diploma in Business Administration from the IndianInstitute of Management, Ahmedabad. Presently, she teachesas a visiting professor and serves on the board of governorsof the Indian Institute of Management, Ahmedabad. She alsohas a market strategy consulting practice and works withIndian and global companies to develop their business‐marketstrategies. She serves as an independent director on theboards of several Indian companies. Bijapurkar has over30 years of work experience, including at McKinsey &Company, MARG (now AC Nielsen India). She has beena full‐time consultant with Hindustan Lever Limited. She haspublications on market and consumer‐related issues bothwithin and outside India and writes columns for the EconomicTimes and Business World.Director: Kannan Srinivasan, is an independent directorof the company. Srinivasan is HJ Heinz II Professor ofManagement, Marketing and Information Systems atCarnegie Mellon University. He earned his undergraduatedegree in Engineering (1978) and Post‐Graduate Diplomain Management (1980) from India. Prior to earning hisPhD (1986) at the University of California at Los Angeles,Srinivasan worked as a product manager at Procter &Gamble (India). He has published over 50 papers in leadingbusiness and statistics academic journals and shoulderseditorial responsibilities of several top‐tier journals. Srinivasanhas been nominated several times for the Leland BachTeaching Award. He has also taught at the graduateschools of business at The University of Chicago andStanford University. He has worked on numerous consultingprojects and executive teaching engagements with firmssuch as General Motors, Asea‐Brown Boveri, Kodak,Chrysler, Fujitsu, IBM, Calgon Carbon, CIBA Vision, KraftFoods, IKEA, Management Science Associates, McKinsey&Co., Pricewaterhouse Coopers, United Technologiesand Wipro. Recently, he has worked with multinationalsin the US to develop their India strategy. He is also thedirector of the Center for E‐Business Innovation (eBI) atCarnegie Mellon University.Source: Company documents.The Global Economic Impact of Private Equity Report 2008 Case studies: ICICI Ventures and Subhiksha 149
Page 2 and 3:
The Globalization of Alternative In
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ContributorsCo-editorsAnuradha Guru
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PrefaceKevin SteinbergChief Operati
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Letter on behalf of the Advisory Bo
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Executive summaryJosh lernerHarvard
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• Private equity-backed companies
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C. Indian casesThe two India cases,
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Part 1Large-sample studiesThe Globa
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The new demography of private equit
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among US publicly traded firms, it
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should be fairly complete. While th
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according to Moody’s (Hamilton et
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draining public markets of firms. I
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FIguresFigure 1A: LBO transactions
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TablesTable 1: Capital IQ 1980s cov
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Table 2: Magnitude and growth of LB
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Table 4: Exits of individual LBO tr
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Table 6: Determinants of exit succe
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Table 7: Ultimate staying power of
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Appendix 1: Imputed enterprise valu
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Private equity and long-run investm
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alternative names associated with t
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4. Finally, we explore whether firm
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When we estimate these regressions,
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cutting back on the number of filin
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Table 1: Summary statisticsPanel D:
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Table 4: Relative citation intensit
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figuresFigure 1: Number of private
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Private equity and employment*steve
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Especially when taken together, our
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centred on the transaction year ide
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and Vartia 1985.) Aggregate employm
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sectors. In Retail Trade, the cumul
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employment-weighted acquisition rat
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FIguresFigure 1: Matches of private
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Figure 6:Figure 6A: Comparison of n
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Figure 8:Figure 8A: Comparison of j
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Figure 11: Variation in impact in e
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Figure 12: Differences in impact on
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Private equity and corporate govern
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et al (2007) track the evolution of
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groups aim to improve firm performa
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distribution of the LBO sponsors, m
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the most difficult cases. This stor
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to see whether these changes of CEO
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Figure 3:This figure represents the
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TablesTable 1: Company size descrip
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Table 5: Changes in the board size,
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Table 7: Board turnoverPanel A: Siz
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Part 2Case studiesThe Global Econom
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European private equity cases: intr
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Exhibit 1: Private equity fund size
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Messer Griesheimann-kristin achleit
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ealized it was not possible to grow
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The deal with Allianz Capital partn
Page 115 and 116: the deal, the private equity invest
Page 117 and 118: Exhibit 1: The Messer Griesheim dea
Page 119 and 120: Exhibit 5: Post buyout structureMes
Page 121 and 122: New Lookann-kristin achleitnerTechn
Page 123 and 124: feet. This restricted store space w
Page 125 and 126: institutional investors why this in
Page 127 and 128: Although a public listing did not a
Page 129 and 130: Exhibit 5: Employment development a
Page 131 and 132: Chinese private equity cases: intro
Page 133 and 134: Hony Capital and China Glass Holdin
Page 135 and 136: Hony’s Chinese name means ambitio
Page 137 and 138: Establishing early agreement on pos
Page 139 and 140: Executing the IPOEach of the initia
Page 141 and 142: Exhibit 1A: Summary of Hony Capital
Page 143 and 144: Exhibit 4: Members of the China Gla
Page 145 and 146: Exhibit 6A: China Glass post‐acqu
Page 147 and 148: Exhibit 8: China Glass stock price
Page 149 and 150: 3i Group plc and Little Sheep*Lily
Page 151 and 152: y an aggressive franchise strategy,
Page 153 and 154: soul” of the business. But there
Page 155 and 156: Exhibit 1: Summary information on 3
Page 157 and 158: Exhibit 6: An excerpt from the 180-
Page 159 and 160: Indian private equity cases: introd
Page 161 and 162: ICICI Venture and Subhiksha *Lily F
Page 163 and 164: investment,” recalled Deshpande.
Page 165: 2005 - 2007: Moderator, protector a
Page 169 and 170: Warburg Pincus and Bharti Tele‐Ve
Page 171 and 172: founded two companies at this time
Page 173 and 174: By 2003 this restructuring task was
Page 175 and 176: Exhibit 1C: Private equity investme
Page 177 and 178: Exhibit 4B: Bharti cellular footpri
Page 179 and 180: Exhibit 6: Summary of Bharti’s fi
Page 181 and 182: Exhibit 7: Bharti’s board structu
Page 183 and 184: In the 1993‐94 academic year, he
Page 185 and 186: consumer products. She was also a R
Page 187 and 188: AcknowledgementsJosh LernerHarvard
Page 189: The World Economic Forum is an inde
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